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Galt & Taggart revises forecast for economic growth in Georgia

Business Materials 4 June 2021 18:01 (UTC +04:00)

BAKU, Azerbaijan, June 4

By Tamilla Mammadova – Trend:

The investment bank Galt & Taggart has revised its forecast for the growth of the Georgian economy for 2020 towards its increase - in particular, in the previous forecast, the growth was 5 percent, in the updated version - 7 percent, Trend reports citing Galt & Taggart.

This forecast is more optimistic than the government's one, which foresees an increase of 6.5 percent.

As for the April economic growth, which amounted to 44.8 percent, according to the investment bank, this is due to several factors.

“In April, growth was recorded in all sectors, except for the mining industry. The most noticeable was the increase in the number of tourists - in this direction the growth was 487 percent. A positive trend is also noted in the re-export of cars. In addition, such a high growth rate is due to the fact that in April 2020 the economy completely stopped due to COVID-19 pandemic, respectively, the base was very low,” the bank said in a report.

In the coming months, Galt & Taggart expect tourism to reach 36 percent of 2019 by the end of 2021 and industry revenue of $1.2 billion.

Economic growth will also be supported by the pre-election period - in the fall, Georgia will hold municipal elections, and as a rule, before the elections, government spending, for example, on infrastructure construction, increases significantly.

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